Explain Mt gox to me ?

[bbit]

This has probably been asked a lot so you can just direct me to a good source that works ...

So I'm pretty new and want to get involved but what exactly is Mt Gox? 

Is it an exchange between users to buy BTC ? and if so how the users be trusted at all since paypal has a nasty charge back policy.

How does mt.gox get paid?

I'm sure I'll have others once people reply thank you!

[BombaUcigasa]

It's ok guys, I got this newbie, don't worry, I won't lash out on him... let me write up my reply... in this thread and in this one too: http://forum.bitcoin.org/index.php?topic=14282

https://mtgox.com/ -- go to the homepage of the site your are referring to. Read the first paragraph:

Mt Gox is an exchange. It allows you to trade US Dollars (USD) for Bitcoins (BTC) or Bitcoins for US Dollars with other Mt Gox users. You set the price you want to buy or sell your BTC for.

This answers your first two questions. From the first paragraph!

https://mtgox.com/trade -- this is a page that shows the buy and sell forms, you don't need to log in to see it, and it appears on the menu after you navigate from the homepage. It also states this:

Mt Gox charges a small fee (0.65%) for each trade.

There, now you know how mtgox gets paid.

https://mtgox.com/users/addFunds -- What about paypal and trust? Well there is no paypal here, you need to use serious banking services, like banks, Liberty Reserve, checks or cash.

All questions answered by simply visiting the website for two minutes, instead of making a thread and waiting for hours for the answers to magically get delivered. How amazing is this thing called a forum!!! I'm assuming you heard about mt.gox but don't know the address, otherwise you would have different questions, definitely harder and complex question than what is this website that explains itself in the first paragraph! In that case, the address is again: www.mtgox.com

Enjoy!

[bbit]

It's ok guys, I got this newbie, don't worry, I won't lash out on him... let me write up my reply...

https://mtgox.com/ -- go to the homepage of the site your are referring to. Read the first paragraph:

Mt Gox is an exchange. It allows you to trade US Dollars (USD) for Bitcoins (BTC) or Bitcoins for US Dollars with other Mt Gox users. You set the price you want to buy or sell your BTC for.

This answers your first two questions. From the first paragraph!

https://mtgox.com/trade -- this is a page that shows the buy and sell forms, you don't need to log in to see it, and it appears on the menu after you navigate from the homepage. It also states this:

Mt Gox charges a small fee (0.65%) for each trade.

There, now you know how mtgox gets paid.

https://mtgox.com/users/addFunds -- What about paypal and trust? Well there is no paypal here, you need to use serious banking services, like banks, Liberty Reserve, checks or cash.

All questions answered by simply visiting the website for two minutes, instead of making a thread and waiting for hours for the answers to magically get delivered. How amazing is this thing called a forum!!!

Bomba - thanks for taking your time on this thing called the magical forum to reply to this nooooob ...   So there is  chance that someone would just do a chargeback on their paypal after you paid them right ?

[BombaUcigasa]

Bomba - thanks for taking your time on this thing called the magical forum to reply to this nooooob ...   So there is  chance that someone would just do a chargeback on their paypal after you paid them right ?

That is another question that is completely different than the title and initial questions, and on this magical forum you will see everyone say: DO NOT USE PAYPAL.

Such is the case that I agree, unless you want to buy bitcoins and run a trust check against the party that sells the bitcoins, DO NOT USE PAYPAL.

Because yes, as you assume, you can chargeback paypal or your credit card company/issuer/bank.

Do you know what's wrong with a trade if the paypal sellers charges back his payment?

[bbit]

Bomba - thanks for taking your time on this thing called the magical forum to reply to this nooooob ...   So there is  chance that someone would just do a chargeback on their paypal after you paid them right ?

That is another question that is completely different than the title and initial questions, and on this magical forum you will see everyone say: DO NOT USE PAYPAL.

Such is the case that I agree, unless you want to buy bitcoins and run a trust check against the party that sells the bitcoins, DO NOT USE PAYPAL.

Because yes, as you assume, you can chargeback paypal or your credit card company/issuer/bank.

Do you know what's wrong with a trade if the paypal sellers charges back his payment?

"Do you know what's wrong with a trade if the paypal sellers charges back his payment?"

So let me get this straight mtgox lets 2 users exchange/buy BTC one has the money the other has the BTC but Mtgox has no irresponsibility for the transaction?

[BombaUcigasa]

So let me get this straight mtgox lets 2 users exchange/buy BTC one has the money the other has the BTC but Mtgox has no irresponsibility for the transaction?

The funds are on mtgox, they just update a database with the numbers for the trades of their customers. mtgox doesn't "let" 2 users exchange currency, they effectively exchange their order values between them.

So if I want to buy BTC, I put 30$ on the site, it shows up in my mtgox account, then I place a buy order or accept a sell order for 1 btc / 30 $ and the currency amounts get switched, I get the BTC, the other guy gets the dollars, on-site.

It is explained of course on the website, just like I told you before where to find answers: https://mtgox.com/support

Mt Gox will try to fill as much of your order as possible when you enter it. For example suppose you want to buy 20 BTC. Let's say 2 users have entered 2 offers to sell BTC. User A is selling 3 BTC for $.92. User B is selling 40 BTC for $.94. So you see that the lowest price right now is $.92. But when you enter your buy order for 20 BTC at $.92 you end up buying the 3 BTC from User A and outstanding offer for buying 17 BTC at $.92.

Now suppose you really want those 20 BTC now and you would pay up to $1 for them. Instead of buying 20 at $.92. You could just enter 20 at $1. You will buy the lowest outstanding offers first. So you would end buying 3 BTC from User A at $.92 and 17 BTC from User B at $.94. And then your order is filled.

[bbit]

So let me get this straight mtgox lets 2 users exchange/buy BTC one has the money the other has the BTC but Mtgox has no irresponsibility for the transaction?

The funds are on mtgox, they just update a database with the numbers for the trades of their customers. mtgox doesn't "let" 2 users exchange currency, they effectively exchange their order values between them.

So if I want to buy BTC, I put 30$ on the site, it shows up in my mtgox account, then I place a buy order or accept a sell order for 1 btc / 30 $ and the currency amounts get switched, I get the BTC, the other guy gets the dollars, on-site.

Ok, starting to sound a little more clearer. So there is still that "risk" that the user buying BTC with paypal won't fullfill his or her side  right ?

[tito13kfm]

MtGox doesn't allow paypal.. You deposit actual cash, from Dwolla or LR.

Not sure how you brought paypal in to it..

[imperi]

Could someone please explain the transaction limits of $1000? Where does it apply, where does it not?

[bbit]

MtGox doesn't allow paypal.. You deposit actual cash, from Dwolla or LR.

Not sure how you brought paypal in to it..

tito I thought it paypal was the transaction between buyer and seller on mtgox ....thats how it got in!

[tito13kfm]

Could someone please explain the transaction limits of $1000? Where does it apply, where does it not?

It's $1000 per day, $10000 per month max withdraw.  That applies to dollars and bitcoins

You can have the limit upped if you provide some forms of ID to MagicalTux.

MtGox doesn't allow paypal.. You deposit actual cash, from Dwolla or LR.

Not sure how you brought paypal in to it..

tito I thought it paypal was the transaction between buyer and seller on mtgox ....thats how it got in!

I see.  The transactions all take place in a database.  Any dollars transferred in are stored in MtGox's "bank" account, all Bitcoins are stored in his bitcoin wallet (simplified, but basically true).

Trades take place by allocating a portion of dollars or bitcoins to the users trading.  No money techincally trades hands, numbers are just moved in a data base.

The only time money/bitcoins actually changes hands is when a deposit or withdraw happens.  MtGox is sending you the money or the bitcoins.